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Capital Credits

There is a unique difference from being a ‘member’ of an electric cooperative and being a customer with an investor-owned utility. When you begin using electric service provided by an REMC, you actually become an owner of the business.

How Capital Credits Work

Clark County REMC operates as a non-profit cooperative:

  • Margins generated by the REMC are allocated back to the membership in the form of capital credits on a patronage basis
  • This allocation is based on how much electricity was purchased by each member during the year
  • These capital credits are allocated annually and refunded overtime in accordance with the financial goals of the REMC

Moving or Stopping Service

If you move or no longer have electric service with Clark County REMC:

  • Members must keep their address current so that future disbursements can be properly mailed
  • Capital credits are reserved for members even if they move out of the service area
  • The REMC will make every effort to deliver a check by mail

List of Unclaimed Capital Credits

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Capital Credit Frequently Asked Questions

How do Capital Credits Work?

You need to know 2 things about Capital Credits to better understand how they work:

Allocations:

  • When the cooperative has more revenue than expenses in a given year (referred to as a margin), the margin is distributed proportionately (allocated) to all members in the form of capital credits
  • A record of the yearly allocation is permanently maintained in the member’s name
  • These allocations are considered each member’s equity in the cooperative
  • The amount of capital credits a member earns is based on the amount of electricity purchased in a given year

Retirements:

This refers to capital credits that will be paid to you in the future.

  • The Board of Directors will determine what yearly allocations will be retired (paid back) to the members
  • This retirement cycle, from allocation to retirement, will typically be 25 years
  • The 25 year cycle reflects the average service life of electrical distribution plant and also the repayment term on debt that is incurred by Clark County REMC
When will I be paid for my Capital Credits?
  • Capital credits are retired at the discretion of the Clark County Board of Directors
  • The Board of Directors will review the financial health of the cooperative to ascertain that business requirements and other obligations have been met before a capital credits retirement is authorized
  • The prospect of retiring capital credits will be reviewed each year into the future
  • As long as the financial condition of the cooperative remains strong, the Board expects to authorize retiring capital credits on a yearly basis
What happens to allocated Capital Credits if I am no longer a member of Clark County REMC?

When you discontinue service with Clark County REMC, you are no longer a member and capital credit allocations will no longer accrue.

  • Records will be maintained in the former member’s name for the purpose of future retirements
  • When and if the Clark County REMC Board of Directors elects to retire (pay) capital credits in the future, the check is mailed to the last address on record
    • It is the responsibility of the former member to maintain a current mailing address with Clark County REMC
Are Capital Credits refunded every year?

Each year, the Clark County REMC Board of Directors makes a decision on whether to refund capital credits based on the financial health of the cooperative.

During some years, the co-op may experience:

  • Extreme weather patterns which significantly affects kilowatt-hour sales and margins
  • High growth in the number of new accounts added
  • Maintaining an optimal equity level
  • Rate inadequacy due to inflated costs since the last rate revision or severe storms may result in the need to spend additional funds to repair lines and restore electric service

These events might lower cash and member equity, causing the board to defer any capital credit refund. For this reason Clark County REMC’s ability to return margins to members in the form of capital credits reflects your cooperative’s strength and financial stability.

How are Capital Credits handled upon dissolution of marriage or death of a member?

Capital credits will remain in the name(s) of the original member(s) until Clark County REMC is notified by a spouse, relative, or other legal representative that the account may be re-assigned to another person or transferred to an estate.

Documentation will be required for Clark County REMC to complete a request for capital credits to be re-assigned from the original member(s):

  • In the case of a member who is deceased:
    • An Agent Appointment Form completed in front of a notary and returned to the office. (provided by the cooperative).
    • Photo ID of the representative (to include driver’s license, passport, or other gov’t issued ID).
  • For a member who is not deceased but needs personal appointment or representative:
    • Guardianship papers
    • Certified Power of Attorney papers
    • Photo ID of the representative (to include driver’s license, passport, or other gov’t issued ID).

In the case of dissolution of marriage:

  • The Cooperative must receive appropriate legal documentation as proof of the dissolution of marriage between spouses in order to make any changes in the ownership of the capital credits
  • Otherwise, if the capital credits were associated with a joint membership, they will remain in both members’ names
  • If the capital credits were associated with a single membership, the capital credits will remain in the original member’s name